Chapter 1.docx

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Ryerson University
Information Technology Management
ITM 350
Franklyn Prescod

Chapter 1 – Introduction to Ebusiness Introduction  Trading exchange is an online marketplace, usually on a website that enables suppliers & customers to carry out their business electronically often using auctioning techniques o Sears is an example of a company transitioning from “bricks” to “clicks” which means a company existing in the real world now offers eBusiness as well  Small businesses also enter into eBusiness and sometimes for marketing & selling products to customers or take part in B2B activities What is Ebusiness?  Electronic data interchange (EDI) is a structured way of creating electronic forms that can be transmitted between trading partners to execute business transactions without the need to generate any paper  Ebusiness means any form of business activities performed in electronic form, it has existed even before internet existed o Ebusiness is the strategic use of technology, particularly the internet to integrate & streamline the business processes, enterprise applications & organizational structure necessary to create a high-performance business model The Foundations of Ebusiness Ebusiness Models  There are several features of internet-based business that have an impact on the business models adopted by businesses such as o Speed  The use of technology has changed the expectations of people regarding the time it takes to satisfy their needs  People expect fast turnaround to their requests especially when technology is used  Businesses need to construct their business models so that they can deliver their products/services quickly & efficiently with keeping in mind of the competitive industries o Convenience  People use internet also for convenience  For instance, people can check their bank balances online without needing to go to the actual branch (more ex. on pg 6) o Customization  People now want more customized products and services  Integrated systems which are information systems that are joined together in such a way that they can easily share data between them  For example, Dell offers customized laptops o Redefinition of Product Value  The ability of the internet to convey a variety of information, services & other features has led to a redefinition of what is meant by a product or service (ex. on pg 7-8) o Media Flexibility  The incredible capacity of the internet to grow & change & to convey a variety of content means that business is continually challenged to offer new features & services to customers before the customer demands them Ebusiness Strategy  Business models define how a business is going to make money & strategy defines how it plans to achieve the desired business model  In ebusiness, strategy formulation & execution must move fast & in most cases must be tied closely to significant business processes in a way that makes them flexible & responsive, this is known as flexible business design The Structure of Ebusiness  Ebusiness includes the front-office & back-office information system applications that drive modern business (see figure 1.1 on pg 9)  CRM (Customer Relationship Management) is the set of strategies, technologies & processes that allow the business to continuously improve offerings to customers  Eprocurement is the complete business process of acquiring goods & services through electronic means, from requisition through to fulfillment & payment  There are many other IS applications that serve to integrate the systems of a business to streamline its value chain Systems Integration  Corporate systems need to be organized & integrated in such a way that there is a fast & free flow of information throughout the systems regardless of the different technologies, functions & platforms within organizations and users does not see that different systems are being used is called systems integration  Companies need to obtain the materials & process them on time to meet the high expectations of customers and systems integration allows companies to provide this fast turnaround without restoring to increases in inventory  Intranets are computer networks within a company, such networks are internal to the company and are used to make systems integration happen  Extranets are computer networks that make use of internet technology when companies extend outside their internal boundaries  HTML (HyperText Markup Language) is a programming language used to create webpages  Extensible Markup Language (XML) is a tool that is similar to HTML & is compatible but does not rely on single pre-set tags to identify information o Allows any document builder to define new XML tags within any XML document  Firewalls are separate, highly secure computers along with related policies & procedures, through which access to the network from the internet is exclusively directed Tools for Systems Integration  WWW (World Wide Web) is the user-friendly, graphics-capable component of the internet  Businesses use tools like enterprise resource planning (ERP), supply-chain management (SCM), CRM and eprocurement to achieve systems integration both externally & internally o ERP systems are large software systems that a business uses to automate its activities across their full range  ERP systems offer the ability to share a common pool of data across an entire enterprise & to run their application using a very common format  Also offers management to have quick access to the latest info about the organization’s activities & performance o CRM systems enable an organization to deliver on its customer needs on timely basis  CRM does this by collecting info about customers & uses that info to offer them a product that is tailored to their needs  Idea of CRM is to acquire new customers, enhance the profitability of all customers & keep the profitable ones o Eprocurement systems are 2 main types
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